Robots and industrialization in developing countries (pdf, UNCTAD)

The current question is therefore: now that the commodity bonanza is over, capital flows are reversing and China is turning towards a more balanced growth path driven more by domestic demand than exports, how can Africa and Latin America reignite industrialization? Whatever the chosen strategy, it will have to account for the rapidly increasing spread of new automation technologies and artificial intelligence in the form of robots. Much of the debate on the economic impacts of the use of robots remains speculative, and disruptive technologies always bring a mix of benefits and risks. Whatever the impacts, final outcomes will be shaped by policies. A comprehensive approach aimed at maximizing the benefits of the use of robots for industrialization in developing countries includes consideration of the following elements: [Press release]

India: Manufacturing for the 21st century (LiveMint)

Robots in this new paradigm are not just the automatic welding bots that have been used for decades in the automobile assembly line. They are more trainable and have a very high artificial intelligence coefficient. Baxter is a cost-effective robot - available for $25,000 - that can be trained in no time by simply moving its arm through a work-cycle. And within a minute, the robot can be transformed to perform any desired activity. The second structural shift is the growth of global digital services driven by I 4.0 technologies. These services are becoming growth and profit drivers for manufacturing companies.

South Africa: Deputy Minister Mcebisi Jonas’ speech to the 2016 ABSIP Financial Service Conference (GCIS)

South Africa is often described as a fragile economy. Fragile economies are those that have become too dependent on unreliable sources of foreign investment to finance their own growth ambitions, and in South Africa’s case, even their infrastructure and social investments. What countries such as Brazil, Turkey, and South Africa have in common is their extreme vulnerability to external shocks, with susceptibility to large-scale financial crises caused by even relatively small economic shocks. The reason for this has to do with the structure of the economy, and the failure to implement the necessary economic reforms. When one compares economies such as Brazil, Turkey and South Africa with more resilient economies such as South Korea, Malaysia, and even China, a number of core differences are evident.

Economies that have enjoyed higher and more equitable growth, and have proved far more resilient in the recent global downturn, are those with more diversified economies and higher levels of manufacturing value added. South Africa’s manufacturing value added as a percentage of GDP is around 12%, Turkey’s around 13% and Brazil’s 17%, compared to China (32%), South Korea (31%) and Thailand (33%). It is especially in the high technology exports that the real differences are exposed. As a percentage of manufactured exports, high technology goods make up only 4.5% in SA and 2% in Turkey, compared to 43% in Malaysia, and 26% in both China and South Korea. This is directly attributed to government support in areas of R&D, technology development, industrial policy, export incentives and logistics efficiencies. [Minister Rob Davies on manufacturing and diversification of SA’s economy]

Towards a Mauritius-China FTA: outcomes from the Sino-Mauritius Joint Economic Commission (GoM)

The People’s Republic of China has written off Mauritius’ debts amounting to Rs 450 million in view of cementing the concrete friendly relations of cooperation between the two countries. This was announced by the Minister of Finance and Economic Development, Mr Pravind Jugnauth, yesterday during a press conference in Port Louis regarding his recent mission to China in the context of the 10th Sino-Mauritius Joint Economic Commission held in Beijing. Outcomes include: (i) signing of two MoUs pertaining to a joint feasibility study on the Mauritius-China Free Trade Agreement to boost trade and investment; and an MoU with regards reinforcing investment in the Ocean Economy sector respectively, (ii) setting up of a fishing port by the Chinese society LHF Marine Development Limited at Bain des Dames, (iii) provision of technical expertise by China in the Agricultural sector to encourage bio-farming.

Meetings were also scheduled with captains of the Chinese business community during a Business Forum organised by the Board of Investment jointly with the China-Africa Development Fund in a bid to consolidate trade relations between the two countries while extending collaboration in various sectors of business. Some 150 high-profile Chinese investors attended the forum and have demonstrated keen interest to invest in Mauritius and use the country as a stepping-stone to access Africa.

Angola: Funding granted by China reaches US$15bn (MacauHub)

The value of loans and credit lines granted by China to Angola since 2004 total US$15 billion, said Monday in Luanda the minister and chief of staff of the President, speaking at the opening of the Angola-China Investment Forum. Manuel da Cruz Neto also said that China is currently Angola’s largest trading partner and added that since last July the country has become the largest supplier of oil to China, overtaking its traditional suppliers, such as Russia and Saudi Arabia. [More than 100 Chinese investment projects identified in Angola in 2016]

Carlos Lopes: Namibia’s resources could fund its projects (The Namibian)

Former UNECA executive secretary Carlos Lopes added that since Namibia is a small country with a small economy, it has to go the extra mile to attract investors by easing the cost of doing business in the country, amongst other things. “Size matters,” he said repeatedly, giving as an example how Namibia cannot really do much when its biggest trading partner South Africa messes up. “South Africa is currently in trouble, and is bringing the bad weather to Namibia,” he noted, further emphasising why Namibia, although small, needs to grow its economy by going the extra mile to attract investors. “When you see big companies going into Congo, Ethiopia and Nigeria, it is not because those countries have better business environments than Namibia. It is because of the size [of the population]. Size matters,” he reiterated. [Investment conference: Namibia sold to the world]

Namibia: Chicken farming is a ‘low-hanging fruit’, says trade forum analyst (New Era)

Chicken farming is a “low-hanging fruit” for Namibia to create employment in the short and medium term. “This is not the time to learn, this is the time to implement,” says Maria Lisa Immanuel, senior trade and investment policy analyst of the Namibia Trade Forum. Immanuel made this statement during the official launch of the multi-million Namboer Poultry initiative last week in Windhoek, saying hard times are not coming, they are with us. Poultry production is in its infancy in Namibia. Until 2012, Namibia imported all its poultry products. Government under the Ministry of Industrialisation, Trade and SME Development decided to protect the industry through quantitative restriction measures using the Import and Export Act, No. 30 of 1994.

Nigeria: Senate to consider trade facilitation legislation (The Eagle)

Today, the 8th Senate will consider legislation to reform the administration and management of the Customs and Excise system in Nigeria. The bill, the Customs and Excise Management Act, establishes a new Nigeria Customs Service and repeals other Customs and Excise legislations. The bill creates a Custom and Excise Governing Board to oversee the administration of the Customs Service. The Board shall be responsible for formulating the general policy guidelines and matters pertaining to the governance assessment and collection of revenues.

Trade, security define Kagame’s African diplomatic offensive (The East African)

President Paul Kagame of Rwanda has in recent weeks been on a double-barrelled diplomatic offensive addressing economic and political issues. According to experts, Kagame has been seeking to open and consolidate markets for Rwandan manufacturers on the one hand and to neutralise the threat posed by dissident forces operating in Southern and Central Africa on the other.

Kenya: Tourism sector on rebound as arrivals grow by 18% (Business Daily)

Tourist arrivals grew by 17.8% in the first nine months of 2016, underlining a rebound for a sector that has been losing cash over the past six years. The number of international visitors rose to 655,058 in the year to September, up from 555,856 in a similar period last year when arrivals had slumped by 20%, according to data from Kenya Tourism Board.

Vic Falls is ours, not yours: Zim tells SA (NewsDay)

South Africa must stop advertising Victoria Falls as its own destination, as Zimbabwe is losing out in terms of tourism revenues, deputy chief secretary to the President and Cabinet, Ray Ndhlukula, has said. Speaking at an All Stakeholders Zimbabwe Image Management workshop in Harare yesterday, Ndhlukula said it was disturbing that tourists were now flying in and out of Zimbabwe on the same day.

Eight new truck stops for Kalahari Corridor (IOL)

The Trans-Kalahari Corridor Secretariat said it would set up eight new truck stops to provide rest and refreshment services for truckers operating along the road that links Namibia, Botswana and South Africa. The TKC is a key trade route and the only over-land link between Walvis Bay and Durban. The truck stops, to be set up in Gobabis and Charles Hill (on the border of Botswana and Namibia) and Kang, Sekoma, Jwaneng and Lobatse (Botswana) as well as in Zeerust (South Africa) would include ablution facilities, wellness centres and points where drivers could refill their road safety kits. [Botswana’s dry port failing to divert business from Durban]

Doing Business 2017: economy profiles for select African countries (World Bank)

The following economy profiles present the Doing Business indicators for a selection of sub-Saharan African countries. To allow useful comparison, it also provides data for other selected economies (comparator economies) for each indicator. The data in this report are current as of June 1, 2016 (except for the paying taxes indicators, which cover the period January – December 2015). Doing Business Economy Profiles available for: Botswana, Lesotho, Namibia, Swaziland, South Africa, Angola, Kenya, Rwanda, Uganda, Burundi [Why Rwanda improved in World Bank Doing Business ranking]

World Trade Outlook Indicator suggests modest pick-up in trade during fourth quarter (WTO)

The WTOI is a leading indicator of world trade, designed to provide “real time” information on the trajectory of merchandise trade three to four months ahead of trade volume statistics. Combining several trade-related indices into a single composite indicator, the WTOI measures short run performance against medium-run trends. A reading of 100 indicates trade growth in line with trend, while readings greater or less than 100 suggest above or below trend growth. With a current reading of 100.9 for the month of August, the WTOI has risen above trend, signalling accelerating trade growth in November-December. This is the first update of the WTOI since its initial release in July, when the indicator stood at 99.0.

New direct funding available for low- and middle-income countries to regulate tobacco (UN)

New funding is now available to support tobacco control implementation for low and middle income countries through the World Health Organization Framework Convention on Tobacco Control, currently the strongest global instrument to control tobacco. If current patterns continue, tobacco will kill about one billion people during the 21st century. By 2030, 80% of those who die due to tobacco use will be those who live in low- and middle-income countries. The new project will be delivered by the WHO FCTC through a collaboration with the UNDP and other partners. 179 countries and the EU are Parties to the Convention.

Accelerating climate-resilient and low-carbon development: progress report on the implementation of the Africa climate business plan (World Bank)

This report provides an overview of the progress made in 2016 in implementing the Africa Climate Business Plan (ACBP), a blueprint for climate action in Africa that the World Bank launched during the 21st meeting of the Conference of the Parties to the United Nations Framework Convention on Climate Change in Paris in November 2015. The ACBP aims to contribute to filling the climate financing gap in the region. Including the transport component added after the Paris launch, the plan’s goal is to raise $19bn by 2020, for investments that will strengthen, power, and enable resilience in the region. The plan focuses on more than a dozen priority areas, clustered in three groups, where the World Bank expects to help achieve results in the near future.

Africa urged to avoid being caught in the “capacity building syndrome” (AfDB)

Africa should avoid the “Clean Development Mechanism trap” by perpetually pushing capacity building and miss out on serious climate funding opportunities, Balgis Osman Elasha of the AfDB has said. Osman Elasha, who is the Principal Climate Change Officer with the Bank’s Quality Assurance and Results Department, says “Africa could not benefit from the CDM because it was caught up in the capacity building mode while others were taking action.” And in keeping up with the African challenge theme, Seth Osafo, Advisor to the African Group of Negotiators, lamented the lack of in-country coordination among key climate players in most African countries. “For example, the Ministries of Finance are the key financial mobilization units of most governments, but their linkages with the environment is almost not existent on matters of climate change and resource mobilization and/or allocation,” he bemoaned.

Today’s Quick Links:

Russian-Nigerian Bi-National Commission to be held in Abuja, 11 November (African Business)

The Tanzania Investment Forum 2016 will take place on 16 November, Dar es Salaam

AfDB appoints Dr Jennifer Blanke as VP (Agriculture, Human and Social Development)

Zimbabwe: Government gazettes infrastructure sharing law (The Chronicle)

IGAD: Regional Migration Coordination Committee update

Nigeria: Economic governance, diversification and competitiveness support program - appraisal report (pdf, AfDB)

Nigeria: Footwear manufacturers lament lack of patronage (WorldStage)

Spillovers from the maturing of China’s economy (IMF)

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